In the ever-fluctuating landscape of financial markets, investors are constantly seeking opportunities to capitalize on movements in stock prices. While traditional market wisdom emphasizes the importance of long-term investments, the reality is that both upward and downward trends present chances for savvy investors to profit. In a world where the American dollar faces extreme devaluation and inflation skyrockets, certain industries could experience turmoil, presenting unique opportunities for strategic investors. During the Great Reset, if you bet on the losers properly, you will potentially create life changing and or generational wealth. This is partly how the greatest transition and creation of wealth will take place; during both the demise and resurgence.
Industries in the Crosshairs: Potential Winners and Losers
As the dollar's status as the global reserve currency is put into question and the BRICS alliance is starting to gain momentum, industries that are particularly vulnerable to this hypothetical economic upheaval come into focus. Here's a hypothetical breakdown by cultural, societal, and technology expert, Anthony Galima, about key sectors that could be impacted within America:
Financial Institutions: Banks could grapple with the fallout of a plunging dollar, leading to insolvency fears and loan repayment difficulties. Look for the smaller financial institutions to fail first and hardest. Additionally, the transition from USD, United States Dollar; to a entirely digital currency/new medium/CBDC could void all previous banking agreements. (Read: Ice-Nine and the Global Reset: When Truth is Stranger Than Fiction)
Retail and Consumer Goods: Retailers might struggle to maintain profitability as production costs surge and consumer purchasing power dwindles. Within the Western World, luxury goods that regular people struggle to afford and purchase will fail first. Think about "popular culture" to stores in "malls."
Automotive Industry: With gasoline prices soaring, demand for vehicles could plummet, impacting manufacturers, suppliers, and dealerships alike. As the demand for gasoline vehicles declines; logically one would think the demand for electric vehicles will increase. That is not the case, electric vehicles will be just as costly/even more costly to operate; and the price of these vehicles will not "come down." (Go to Amazon, BUY on Kindle or in Paperback: "The Making and Unmaking of the Modern World: Business Anthropology.")
Travel and Tourism: An expensive dollar could deter Americans from international travel, causing a ripple effect through airlines, hotels, and travel agencies. And with fear of another potential "lockdown" - many airlines to cruises will not make it. The 4th Industrial Revolution, the transition to 15 minute cities and crypto is very much about restricting and controlling "people and commerce." Travel restrictions will become normalized and understood.
Real Estate: Rising interest rates could make mortgages unaffordable, potentially dampening the housing market. "Own nothing and be happy." That is the future; America is about to become a country of "renters."
Energy Companies: Skyrocketing costs and decreased demand could pose challenges for energy companies. Additionally, in America, our "grid" is ancient. To say it is inefficient and ineffective; as well as extremely "fragile" is an understatement.
Consumer Electronics: Global supply chain disruptions could spell trouble for companies in this sector. Additionally, with record inflation, these "disposable" technological goods will begin to be kept longer by individuals. The cost of the newest iPhone isn't going to drop, but the ability to purchase/finance the newest version will.
Manufacturing: Companies reliant on imported materials might face higher production costs and reduced demand.
Investment Strategies Amidst Uncertainty
While the economic scenario painted above is purely hypothetical, investors can find opportunities to navigate tumultuous times. Market volatility, including severe downturns, can offer the chance for strategic investors to position themselves advantageously. A market crash can be the backdrop for well-timed bets on an economic downturn.
Shorting Market Positions: If the dollar's value drops significantly, experienced investors might consider "shorting" positions in industries likely to face headwinds. By shorting, investors essentially bet on a company's stock value declining. This strategy can yield substantial profits during economic contractions.
Companies to Watch
Drawing historical parallels can offer insight into potential outcomes. During the 2008 financial crisis, financial institutions like Lehman Brothers and AIG suffered massive losses, reflecting the vulnerability of the banking sector. Likewise, General Motors faced bankruptcy during the same period, showcasing the risks for the automotive industry.
While the scenario described remains speculative, the concept of profiting during economic turmoil is rooted in historical trends and market dynamics. Investors should exercise caution, conduct thorough research, and seek expert advice before implementing any investment strategy. As always, the unpredictability of financial markets requires a balanced approach that factors in both potential risks and rewards. Companies with exposure to and within the industries vulnerable to the dollar's decline and inflation make them prime candidates for shorting strategies. At his moment in history, it might be "wise" and much easier to bet on the losers.